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4. How can governments address the challenges associated with rising public debt levels, especially in the context of economic downturns or crises? ​

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4. How can governments address the challenges associated with rising public debt levels, especially in the context of economic downturns or crises? ​

Rising public debt levels can pose challenges for governments, especially when the economy is facing downturns or crises. Some of the challenges include higher borrowing costs, lower credit ratings, reduced fiscal space, and increased vulnerability to external shocks. To address these challenges, governments need to adopt sound public debt management strategies that balance their cost and risk objectives with their financing needs. Some of the common public debt management strategies are; Debt reduction; Debt restructuring; Debt issuance; and Debt diversification

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